What's happened
Former President Donald Trump could owe over $100 million to the IRS for improperly claiming tax breaks on his Chicago skyscraper, leading to a potential tax bill after an IRS inquiry uncovered the double-dipping tactic.
Why it matters
The revelation that Trump may owe a significant sum to the IRS due to questionable tax practices could have legal and financial implications for him. It also raises questions about the integrity of his financial dealings and could impact his reputation and future business ventures.
What the papers say
According to The New York Times and ProPublica, Trump used a dubious accounting maneuver to claim improper tax breaks on his Chicago tower, potentially leading to a hefty tax bill. The IRS believes Trump violated a law meant to prevent double-dipping on tax-reducing losses, resulting in him writing off the same losses twice. The building, Trump International Hotel & Tower in Chicago, has been a financial drain, and Trump's actions could have significant financial consequences.
How we got here
The Trump International Hotel & Tower in Chicago was completed in 2009 and has faced financial challenges over the years. Trump's attempt to claim tax benefits for losses on the project dates back to his 2008 tax return, where he reported losses as high as $651 million due to the struggling sales of the building.
Common question
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Chicago, officially the City of Chicago, is the most populous city in the U.S. state of Illinois, and the third-most-populous city in the United States.